Ciena shares jump as AI-driven demand fuels earnings beat

Investing.com -- Ciena Corporation (NYSE: CIEN) shares surged 8.2% premarket on Thursday after the networking equipment provider reported fiscal fourth-quarter earnings that significantly exceeded analyst expectations, driven by strong demand from cloud providers and growing opportunities in AI infrastructure.

The company reported adjusted earnings of $0.91 per share for the quarter ended November 1, handily beating the analyst consensus of $0.77. Revenue jumped 20% YoY to $1.35 billion, surpassing the $1.29 billion analyst estimate. The strong performance was fueled by robust growth in the company’s optical networking segment, which increased to $929.2 million from $779.6 million a year earlier.

"Our record fiscal fourth quarter and full-year performance reinforces our position as the global leader in high-speed connectivity with an expanding role in the AI ecosystem," said Gary Smith, president and CEO of Ciena.

Looking ahead, Ciena provided an optimistic outlook, forecasting first-quarter fiscal 2026 revenue between $1.35 billion and $1.43 billion, well above the consensus estimate of $1.25 billion. For the full fiscal year 2026, the company expects revenue of $5.7 billion to $6.1 billion, exceeding analyst projections of $5.53 billion.

"Our results reflect Ciena’s market momentum within a strong demand environment and our commitment to financial discipline," said Marc Graff, CFO of Ciena. "With our growing operating leverage and strong cash generation and balance sheet, we are well-positioned to deliver value for our customers and shareholders in 2026."

For the full fiscal year 2025, Ciena reported revenue of $4.77 billion, up 19% from $4.01 billion in fiscal 2024, with adjusted earnings of $2.64 per share compared to $1.82 in the previous year.

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